Professional Documents
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What is compensation?
The money you receive for working!
Several methods of being compensated: Straight time Overtime Double time
Straight time
(Anything 40 hours a week and under) Hourly Wage Rate x Number of Hours Worked See example on page 202
Solution
$7.20 x 38 hours = $273.60
Overtime
(Anything over 40 hours. 1.5 times regular wage) Example: 55 hours @ $10.15 an hour Regular time pay: 40 x $10.15 = $406 Overtime pay: 55 hours 40 hours = 15 hours 15 hours x $10.15 x 1.5 = $112.50
Overtime (continued)
Regular time pay + Overtime pay = Gross Pay $406 + $112.50 = $518.50 See other example on page 203
Solution
1.
2.
3.
Double time
A perk of some jobs Given for special working conditions
Solution
1.
2.
3.
Solution (cont.)
Add up the three: $360 + $202.50 + $90 = $652.50
Salary
Set amount you are paid regardless of how many hours you work. Divide yearly salary by how many paychecks per year (See chart on pg. 202) Example: Alice is salaried at $35,000 per year. If she gets paid weekly, what is her gross pay? $35,000 / 52 weeks per year = $673.08 (See example on page 208)
Solution
$36,000 / 24 paychecks a year = $1,500
Solution
($12,000 - $1,000 - $500) x 7% = $735 $735 + $200 = $935
Piecework
Based on some performance criteria Varies from situation to situation
Example: Josh cuts tobacco. He gets paid $0.15 per stick. If Josh cut 1,800 sticks today, what is his gross pay? 1,800 x $0.15 = $270 (See page 209)
Solution
182 x $0.15 = $27.30